On Tuesday, July 27, Navient NAVI will release its latest earnings report. Check out Benzinga's preview to understand the implications.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Wall Street analysts see Navient reporting earnings of $0.85 per share on sales of $269.54 million. In the same quarter last year, Navient reported EPS of $0.91 on revenue of $329.00 million.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be down 6.59%. Revenue would have fallen 18.07% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.77 | 0.83 | 0.78 | 0.47 |
| EPS Actual | 1.71 | 0.97 | 1.03 | 0.91 |
| Revenue Estimate | 281.37 M | 283.90 M | 281.74 M | 272.00 M |
| Revenue Actual | 295.00 M | 314.00 M | 321.00 M | 329.00 M |
Want Real-Time Earnings Calendar Updates?
Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.
Stock Performance
Shares of Navient were trading at $20.27 as of July 23. Over the last 52-week period, shares are up 149.69%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Navient is scheduled to hold the call at 08:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
